|
|
 |
|
Viewing report
|
|
|
|
Vietnam Infrastructure Report Q1 2012
Business Monitor International, Nov 2011, Pages: 115
Business Monitor International's Vietnam Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Vietnam's infrastructure industry.
BMI View:
The latest interest rate hike in Vietnam reinforces BMI's view that a significant moderation in construction activity will take place in 2011 due to adverse monetary conditions. As such, BMI is maintaining its growth expectations for Vietnam's construction industry, with real growth for the sector penciled in at 4.1% in 2011. While this attempt to curb inflationary pressures in 2011 could create a more conductive monetary environment for construction activity over the long term, the weakening global economy could dampen foreign investment and financing into Vietnam's construction sector over the near-term.
Major developments over the last quarter include:
- In September 2011, Japan Atomic Power Company (JAPC) has signed a contract with Electricity of Vietnam (EVN) to provide consultancy services, reports Vietnam News. JAPC will provide services for the planned Ninh Thuan 2 nuclear plant, including a feasibility survey and investment plans. The survey will cost US$26mn and will be funded by the Japanese government. Japan's ambassador said his country wants Vietnam to benefit from nuclear technology, and from lessons learned from 2011's tsunami.
- The Vietnamese government also has major plans to boost the combined port capacity in the Mekong Delta provinces from 15.7mn tonnes in 2010 to 28mn tonnes in 2020. According to plans developed by the government in September 2011, the expansion in capacity will focus on river ports and seaports located on the Tien and Hau rivers - the main tributaries of the Mekong River.
- In September 2011, the Vietnamese government secured a US$631mn loan from the World Bank for part of the 139km Danang-Quang Ngai expressway project. The funds will be directed towards the development of a 65km section of the road between Danang city and Tam Ky in Quang Nam province. Meanwhile, the remaining 74km section of the expressway, to run from Tam Ky to Quang Ngai, as well as an 8km connection with National Highway 1A, will be constructed using US$673mn in funding from the Japan International Cooperation Agency (JICA).
Vietnam's business environment continues to be an issue, achieving a score of 53.7 in BMI's Business Environment Rating matrix. Although the country's infrastructure market continues to score quite well, downside risks from market volatility and country risk have further dragged down the overall score. Corruption still remains a problem and is likely to continue to impede infrastructure development until government reforms can change the landscape. Yet, with increased foreign investment on the back of attractive growth rates, there have been signs that the country is moving in the right direction in invoking structures (such as PPP regimes) to improve the business environment.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
